RWCB Redwood Capital Bancorp (QX)

REDWOOD CAPITAL BANCORP (RWCB.OB), the only locally owned and operated community bank holding company in Humboldt County, announced unaudited financial results for the three and twelve month periods ended December 31, 2013. The community bank holding company reported record annual profits and reaffirmed its ongoing quarterly cash dividend.

President and CEO John Dalby stated, "We continue to be pleased with the performance of the company. Likewise, we remain proud of our dedicated staff who continually contribute to the growth and profitability of our organization. This March, Redwood Capital Bank will celebrate ten years in business. As we look back on our numerous firsts, we do so looking ahead to the next ten years – one customer at a time. Additionally, we look forward to expanding our reach within the Humboldt County marketplace with the opening of our third branch in Arcata later this year."

Total assets as of December 31, 2013 were $253 million, an increase of 1% over the September 30, 2013 figure and a 5% change from the December 31, 2012 reported figures. Total deposits stood at $227.4 million as of December 31, 2013, 1% greater than the September 30, 2013 figures and a 6% over the December 31, 2012 numbers. The company again reported strong loan growth for the quarter and year. Total loans as of December 31, 2013, net of unearned income, were $175.3 million, an increase of 5% over the prior quarter and 10% over the year ended December 31, 2012.

Consolidated net interest income for the three and twelve months ended December 31, 2013 totaled $2,326,000 and $8,957,000, a robust increase of 8% and 7% for the three and twelve months ended September 30, 2013 and December 31, 2012, respectively. The company also reported net income for the fourth quarter of 2013 of $439,000 while record earnings for the year ended December 31, 2013 were reported as $1,869,000. The earnings represented a 3% decrease over the September 30, 2013 quarter and a strong increase of 54% over the year ended December 31, 2012. The fluctuations in net income during the fourth quarter are attributed to retirement costs associated with vested stock options.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.055 per share, payable on January 31, 2014 to shareholders of record at the close of business on January 27, 2013. The dividend is equivalent to an annual rate of $0.22 per share or 2.47%, based upon a market price of $8.90 per common share, as of January 28, 2014. Since December 31, 2011, the company's stock price has risen by over 52% and its book value, combined with dividends, increased approximately 13% over the same period.

"2013 was a milestone year for Redwood Capital Bancorp and the community we serve. Bucking the industry trends, Redwood Capital Bank built upon its fortress balance sheet with strong loan growth and an improved deposit mix which should result in greater future earnings potential. On behalf of our Board of Directors and staff, we look forward to serving our community for another ten years," Dalby concluded.

For more information regarding Redwood Capital Bancorp, please visit our website at www.redwoodcapitalbank.com, contact Fred Moore, CFO, at (707) 444-9840, or stop by our headquarters and main office at 402 "G" Street, Eureka, CA 95501.

This press release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the bank is conducting its operations, including the real estate market in California and other factors beyond the bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Redwood Capital Bancorp
Selected Consolidated Financial Results - Unaudited
(In Thousands - except share data)
	Period Ended		%
	12/31/2013	9/30/2013	Change
Balance Sheet Data (at period end)
Total assets	$253,003	$250,627	1%
Total deposits	227,449	224,905	1%
Total loans (net)	175,305	166,500	5%
Common equity	15,124	15,210	-1%
Common shares outstanding	1,809,882	1,809,882	0%
Summary of Operations (Current Quarter)
Interest income	2,494	2,474	1%
Interest expense	168	186	-10%
Net Interest Income	2,326	2,288	2%
Non-interest income	338	432	-22%
Non-interest expense	1,799	1,482	21%
Net Income before provision	865	1,238	-30%
Provision for loan losses	150	200	-25%
Income before taxes	715	1,038	-31%
Income taxes	276	410	-33%
Net Income	439	628	-30%
Earnings per share (fully diluted)	$0.24	$0.35	-30%
Book value per common share	$8.37	$8.40	-0.4%
	Period Ended		%
	12/31/2013	12/31/2012	Change
Balance Sheet Data (at period end)
Total assets	$253,003	$ 241,513	5%
Total deposits	227,449	214,998	6%
Total loans (net)	175,305	158,785	10%
Common equity	15,124	14,814	2%
Common shares outstanding	1,809,882	1,792,632	1%
Summary of Operations (Current Quarter)
Interest income	2,494	2,424	3%
Interest expense	168	267	-37%
Net Interest Income	2,326	2,157	8%
Non-interest income	338	464	-27%
Non-interest expense	1,799	1,680	7%
Net Income before provision	865	941	-8%
Provision for loan losses	150	150	0%
Income before taxes	715	791	-10%
Income taxes	276	337	18%
Net Income	439	454	-3%
Earnings per share (fully diluted)	$0.24	$0.25	-4%
Book value per common share	$8.37	$8.27	1%
Summary of Operations (Year to Date)
Interest income	9,765	9,591	2%
Interest expense	808	1,222	-34%
Net Interest Income	8,957	8,369	7%
Non-interest income	1,573	1,322	19%
Non-interest expense	7,078	6,699	6%
Net Income before provision	3,452	2,992	15%
Provision for loan losses	425	995	-57%
Income before taxes	3,027	1,997	52%
Income taxes	1,158	784	48%
Net Income	1,869	1,213	54%
Earnings per share (fully diluted)	$1.03	$0.68	53%
Book value per common share	$8.37	$8.27	1%

CONTACT: Fred Moore, CFO
         (707) 444-9840